Dana Executive Outlines Six Rules for Success in Automotive Aftermarket

Sep 9, 1996


    SAN FRANCISCO, Sept. 9 /PRNewswire/ -- Companies that want to stay
successful in the automotive aftermarket will have to play by new rules, a
Dana Corporation executive told a meeting of aftermarket executives today.
    Bill Carroll, president of Diversified Products and Distribution for Dana,
listed six new rules of competition in the aftermarket business during a
speech, "The New Rules of Competition," to the Frost & Sullivan Strategic
Aftermarket Conference here today.  The conference was co-sponsored by
Aftermarket Business magazine.
    Globalization of the auto parts business was the first trend identified by
Carroll.  Countries that had little or no automotive manufacturing a few years
ago are now major producers.  Thailand is now the third-largest producer of
pickup trucks in the world (following the U.S. and Japan) and has experienced
double-digit growth in vehicle production each year of the past five.
    "It's clear that parts producers who don't make and distribute products
outside their home countries will either disappear or find their businesses
stagnating,"  he said.
    Constant technological change is a second major force in the aftermarket,
according to Carroll.
    "Car makers, suppliers, distributors and technicians must stay on top of
the technology curve," he explained.  "Otherwise, they fall behind and fail.
Those who lead with technology will also lead in their market with sales and
profit."
    The tide of technological change creates a third trend of growing need for
technical support, he said.  Parts and vehicle manufacturers, distributors,
dealers and service outlets all need to invest in ongoing technical training
and honing of skills.  Dana has offered the aftermarket business classes in
engine rebuilding and chassis repair at its Technical Resource Park in Ottawa
Lake, Mich., for nearly 20 years.
    Product and parts proliferation was the fourth trend identified by
Carroll.  Consumers desire vehicles that meet specific needs.  Companies that
invest in engineering, research and development to design and offer unique
products will be the market leaders in the future.
    Carroll listed electronic communication as the fifth trend.
    "Access to information is power," he said.  "Actually, information isn't
power;  it's superpower.  The Internet has enormous potential for all of us.
There will be more marketing, advertising and buying and selling via the
Internet.  Companies that are communication leaders will be market leaders."
    Acquisitions and mergers in the aftermarket business will continue,
Carroll said, identifying a sixth trend.
    "There will probably be only 30 or 35 truly global suppliers to original
equipment manufacturers by the year 2010," he said.  "Companies must grow by
merger, acquisition or association.  That's the best way to survive and
prosper."
    Taking the challenge of global growth to heart, Dana is aggressively
pursuing opportunities in the international aftermarket business, Carroll
said.  Dana has completed 24 acquisitions or mergers since 1993.  Twenty of
them involve operations outside the United States.  The company recently
announced plans to purchase the piston-ring and cylinder-liner business of SPX
Corporation.  Dana's goal is to obtain 50 percent of its business from outside
the U.S. and 50 percent of its sales from the aftermarket by 2000.
    Dana Corporation is a global leader in the engineering, manufacturing and
distribution of products and systems for the vehicular, industrial and mobile
off-highway markets.  Founded in 1904 and based in Toledo, Ohio, Dana operates
facilities in 29 countries with 45,000 people.  Its 1995 sales were
$7.6 billion.  Named in 1995 by Financial World magazine as one of the "Best
100 Growth Companies," Dana is noted for its style of management and its
commitment to innovation.  It has more than 37 product research and
development centers.  The internet address for Dana's home page is
http://www.dana.com.

SOURCE  Dana Corporation

CONTACT: Gary Corrigan, Director - Corporate Communications, of Dana
Corporation, 419-535-4813

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